I received this error message while trying to run Instruments with an iPod 4G connected. It turned out that I was using an out-of-date version of Instruments from an earlier version of XCode (4.2). (When I searched for Instruments in Spotlight, only this version appeared because later versions of XCode hide their tools inside the XCode.app package.) Your circumstances may be different but I suspect that you did not run Instruments from the Profile command in the XCode IDE.
To verify if this is the problem, check the version of Instruments (in 'About Instruments') and verify that it is the same version as your XCode IDE. (For me, these were 4.2 and 4.5 respectively.) If they do not match, right-click on the XCode app in your Applications folder and select 'Show Package Contents'. In Contents/Applications, you should find the correct version of Instruments.